Recognising foreign credit rating agencies in Russia
The regulator has established the criteria that foreign credit rating agencies (CRAs) should meet so that the Bank of Russia can use their ratings in its regulations and other documents. The recognition of foreign ratings will expand the opportunities for a free flow of capital and services in the international financial market.
To be approved by the Bank of Russia, a foreign CRA should have at least five years’ market experience and capital of at least ₽50 million. Its methodology should contain quantitative and qualitative assessments of creditworthiness and enable verification of credit ratings, including based on historical data. Furthermore, a foreign CRA should adhere to corporate governance principles, comply with disclosure terms, and prevent conflicts of interest. The regulator has established 19 criteria in total.
The Bank of Russia may apply the ratings of foreign CRAs conforming to these criteria only with regard to foreign rated entities in accordance with the international scale.